| (5) Sufficiency review and requests for exemption.
Within 30 days after the filing of an ILEC application, commission
staff must file comments on the sufficiency of the application and
on any request for exemption filed by the ILEC under subsection (e)(8)
of this section. No later than 30 days after commission staff's comments
are filed, the ILEC must file a response and may amend or supplement
its application. No later than ten days after the ILEC's response
is filed, commission staff must file a recommendation to the presiding
officer addressing whether the application is sufficient and whether
any requests for exemption should be granted.
(6) Docketing. If commission staff or any intervenor
files, within 30 days after the intervention deadline, a request to
docket the project, the presiding officer will docket the project.
Upon docketing, the presiding officer will ascertain whether the parties
prefer to pursue settlement negotiations or alternative dispute resolution.
If so, the presiding officer will abate the docket for a reasonable
period. If the parties prefer to establish a procedural schedule,
the presiding officer may refer the docket to the State Office of
Administrative Hearings or may take other appropriate action. If neither
commission staff nor an intervenor requests docketing, the presiding
officer must administratively approve or modify the application within
40 days after the intervention deadline.
(g) Calculation of initial ELCS surcharges. An initial
ELCS surcharge must be calculated using the formula described in this
subsection unless the presiding officer, for good cause, modifies
the formula.
(1) Numerator. First, sum the lost revenues and costs
incurred to determine the ILEC's annual ELCS requirement. Second,
use the most current count of access lines to calculate the amount
of ELCS fee revenue received annually by the ILEC. Subtract the annual
ELCS fee revenue from the annual ELCS requirement. The result is the
annual residual. Third, divide the annual residual by 12 to obtain
the monthly residual, the numerator.
(2) Denominator. First, obtain the most current count
of residential and business lines served by the ILEC in Texas. Second,
multiply the number of business lines by two. Third, add the doubled
business lines to the number of residential lines. This total is the
denominator.
(3) ELCS surcharge formula. Divide the numerator in
paragraph (1) of this subsection by the denominator in paragraph (2)
of this subsection to obtain the monthly ELCS surcharge per residential
line. Multiply the monthly ELCS surcharge per residential line by
two to obtain the monthly ELCS surcharge per business line. Round
ELCS surcharges up or down to the nearest penny.
(h) Adjustments to ELCS surcharges. ELCS surcharges
must be adjusted using the formula described in subsection (g) of
this section, except that:
(1) the numerator established in a previous application
may be modified to consider new information relevant to development
of the residual:
(A) for any ELCS surcharge approved before February
1, 2000, if the commission reserved the right to subsequently review
the costs incurred and lost revenues associated with the ELCS surcharge;
or
(B) for any ELCS surcharge approved after February
1, 2000; and
(2) the denominator must be modified to reflect the
most current count of local exchange access lines at the time of the
adjustment. For ELCS surcharges approved before February 1, 2000,
if the number of access lines in the denominator initially included
only non-petitioning exchanges, an adjustment in the number of access
lines must include only non-petitioning exchanges.
(i) Duration. An ILEC must select a preferred duration
of applicability of its proposed ELCS surcharges from alternatives
listed in this subsection. The commission may establish ELCS surcharges
for any duration.
(1) Permanent. An ILEC may initiate a review of its
rates and charges by filing a rate filing package. Following a review
of the ILEC's cost of service in accordance with§26.201 of this
title (relating to Cost of Service), any resulting ELCS surcharge
must be considered permanent unless modified, for good cause, by the
commission.
(2) Phase-down. If an ILEC's application to establish
or increase an ELCS surcharge contains all information required in
subsection (e)(1) - (6) of this section, the ILEC may propose a phase-down
of its ELCS surcharge for a duration of five years. The phase-down
must be implemented by reducing each ELCS surcharge by 20% at the
end of each year of the phase-down period. At the end of the five-year
phase-down period, the ELCS surcharge must be zero. A tariff sheet
filed by the ILEC must contain ELCS surcharges for each of the five
years of the phase-down period.
(3) Phase-out. An ILEC that files an application to
establish or increase an ELCS surcharge may propose a phase-out of
its ELCS surcharge. A proposed phase-out must be for a duration not
to exceed two years. At the end of the phase-out period, the ELCS
surcharge must be zero. A tariff sheet filed by the ILEC must contain
ELCS surcharges for the two-year period and must state the two-year
duration of applicability of the ELCS surcharges.
|
| Source Note: The provisions of this §26.221 adopted to be effective March 14, 2000, 25 TexReg 2030; amended to be effective November 27, 2002, 27 TexReg 10915; amended to be effective December 21, 2023, 48 TexReg 7524 |
